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Canada seeking WTO authorization against U.S exports

Xinhua, June 5, 2015 Adjust font size:

Canada is seeking World Trade Organization (WTO) authorization to impose over three billion Canadian dollars (one Canadian is about 0.8 U.S dollar) in retaliatory measures against U.S. exports to Canada, according to the Canadian Ministry of International Trade Thursday.

Canada's request for authorization to retaliate, filed Thursday with the WTO, will be considered by the WTO Dispute Settlement Body on June 17, 2015.

On May 18, 2015, the WTO ruled for the fourth time against the U.S. country of original labeling (COOL) requirements, reaffirming Canada's long-standing position that these measures violate the U. S.'s international trade obligations and discriminate against Canadian cattle and hogs. The decision was final and without the possibility of further appeal.

"Despite the WTO's final ruling that U.S. country of origin labeling measures are discriminatory, the United States continues to avoid its international trade obligations. Our government will now move ahead under the WTO process and seek authorization for over three billion Canadian dollars in retaliation. We continue to call on the United States to repeal COOL, cease this harmful policy and restore our integrated North American supply chain to the benefit of businesses and workers on both sides of the border, " said Ed Fast, Canada's Minister of International Trade, Thursday.

Canadian Minister of Agriculture and Agri-Food Gerry Ritz said Thursday that the WTO has ruled that the U.S. is out of options and out of time. The only way for the U.S. to avoid billions in immediate retaliation is to repeal COOL.

Since the implementation of the U.S. COOL requirements in 2008, producers and processors on both sides of the border have been harmed by this unnecessary trade barrier, the minister said damages to the Canadian livestock industry are estimated to be more than three billion Canadian dollars annually, and Canada will ask the WTO for authority to impose retaliation measures up to that amount.

In June 2013, Canada released a proposed list of U.S. imports targeted for retaliation.

Canada and the United States enjoy the strongest bilateral trading relationship in the world, with two-way trade in goods and services surpassing 870 billion Canadian dollars last year.

Canada will seek WTO authorization to impose 3.068 billion Canadian dollars per year in retaliatory measures against U.S. exports to Canada.

In 2014, agriculture and agri-food trade between Canada and the U.S. was 51 billion Canadian dollars. Endite